If i had $100,000.

We used to be able to sing..." if i had a million dollars....i'd be rich!"

Not so anymore. The Financial Post ran a story on a couple who were worth  $ 2.5 million  ( net worth) but when they looked at the numbers they couldnt retire early or cut back work to travel. The reason being the investments that made them worth 2.5 generated cash flow that they lived on. Sell the investment and although they realize a windfall- that would be burned through quickly with no income coming in and needing a place to live.
The problem was if your house is worth so much and you sell it- Where do you live? Well I have long been a fan and supporter of Smallworks Laneway housing. Some of you may have met me on the laneway tours. One thing I often heard is" I cant afford  to build one yet".Well , now they have come up with a wonderful DIY solution.

The Smallworks Builder - a starter model that you finish yourself.

If you or members of your circle have construction skills or contacts in the building trades, The Smallworks Builder is the perfect DIY project: an award-winning Smallworks-designed laneway house delivered with the essentials in place – building permit, site preparation, underground services, insulated foundation and slab, walls, doors, windows and roof. The rest – electrical wiring, plumbing and finishing – is up to you.

The starting price of The Smallworks Builder is $100,000. Smallworks performs all the heavy lifting: excavating, pouring the concrete, erecting the building, and cutting through the red tape.( yes even dealing witjh City Hall!)  Delivery – from permit to lock-up – takes only 4 to 6 weeks.

Great savings can be achieved when you have the opportunity to complete the house yourself. It also allows you to transform Smallwork’s well-crafted house into a finished home you can be proud of, on your own terms and your own budget.

So the couple that wanted to travel? they could build their home, rent out the main house and travel on the surplus....

If you have the money ,or if you have the equity- Smallworks can put you in the direction to get your financing at  100% of the laneway cost, and build the whole house to the point you walk in with groceries. But if you would rather finish it yourself overtime this is a great option to get started.
Disclosure- I have worked in sales for Smallworks in the past. Feel free to call me if you have any questions.
 

alternative housing or the future of real estate?

The City of Vancouver allows any RS1 and RS5 zoned property to put in a laneway house provided it meets some siting criteria. That same house can already be built to its maximum FSR and still be eligible. It can have a self contained secondary suite and still be eligible. So that is now turning a single family dwelling into  a 3 family dwelling. This is a good thing, That original home would be worth over a million in all likelihood, add the cost of a suite and laneway and you are  at 1.4 easily. If someone had a big down payment they could buy it and rent out the 2 extra dwellings to pay off the mortgage. But how can this help the average Joe, starting out with a decent paycheck and working hard but no chance to buy a 1.5 mill property!?

 Joe probably has friends in the same boat. If those 3 friends each bought a part of the property. Joe could get into home ownership ( without starting in a closet in the sky) for about $500,000.! These arrangements can be created by contract. All 3 parties are on title in an undivided interest and a seperate legal contract spells out what percentage each owns. Harder to get a mortgage, yes, harder to sell, yes but Joe can own! and plant what he wants in the garden and change the kitchen cupboards and all those delightful things that come from home ownership.All 3 parties have the pride of home ownership . Coming to a neighborhood near you? perhaps the next Real Estate wave, if the mortgage brokers can find any easy way to structure this.